In a taste of what could be the tone for the rest of the session, things got off to an awfully slow start on a US-free Friday.
Investors’ reticence is understandable. For though the US markets won’t be around to set the pace later this afternoon, news from America certainly is, with the country once against seeing a fresh record number of one-day covid-19 cases. Thursday saw a further 55,220 infections, clearing Wednesday’s high by around 2,500.
Alarmingly for Florida, the state made up almost exactly a fifth of those cases, in a stark example of what happens when you have the laxest lockdown measures imaginable.
The blow of this news was countered somewhat by a very strong Caixin services PMI out of China. At 58.4 the reading easily smashed expectations, suggesting a robust comeback from the superpower.
In Europe, meanwhile, the Spanish services sector returned to growth, surging from 27.9 to 50.2 month-on-month. Italy wasn’t quite as fortunate, missing its 46.9 target; however, an increase from 28.9 to 46.4 is still a huge swing in the right direction.
Yet none of this could quite shake the European indices out of their early inertia. The DAX was unchanged just above 12600, with the CAC falling a handful of points but holding above 5000. The FTSE was also down 10 or so points, leaving the UK index at 6230.
Without the US to guide the way this afternoon, it is going to be interesting to see whether Europe can strike out on its own, or whether it will wait for the return of the market daddy next week.
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